Oil Prices Rise After OPEC And Its Allies Agree On Cut Production

BAGHDAD, Oil prices closed on gains of more than 2% after OPEC members and OPEC allies, led by Russia, agreed to cut production to absorb an abundance of global fuel stocks and support the market.

OPEC and its allies agreed on production cuts of 1.2 million bpd starting next year, a move that will be reviewed at a meeting in April.

That figure is higher than the 1 million barrels per day predicted by the market, despite pressure from US President Donald Trump to cut crude prices.

Oil Minister Thamer Ghadhban said after OPEC concluded two days of talks in Vienna that the Organization would cut production by 800,000 barrels per day starting in January, while its allies would contribute further cuts of 400,000 barrels per day.

Russia has pledged to cut production by 228,000 bpd from October’s 11.4 million bpd, although it said the cuts would be gradual and take place over a few months.

Brent crude ended the day at $ 1.61, or 2.7 percent, at $ 61.67 a barrel.

Source: National Iraqi News Agency